right to know

[mecaza]

west virginia

We want to buy a business (hotel with restaurant). Currently, the owner is renting out the restaurant to another person. As potential buyers, do we have the right to inspect the records for the restaurant?

 

[HomeGuru]

west virginia

We want to buy a business (hotel with restaurant). Currently, the owner is renting out the restaurant to another person. As potential buyers, do we have the right to inspect the records for the restaurant?

**A: of course, and you have a right to inspect other documents as well. Why do you ask?

 

[kalypso]

What??

I don't believe that you expect the Restaurant to just hand over their books.. they are not a direct part of the business that you are buying.. they just happen to lease the space!

Ex. I purchased a Restaurant/Marina last year.. the Owner of the property had been renting the restaruant to X.-LLC... The only records that I could ask for were from when the actual Owner of the property was running the restaurant! I did set down with the company that was leasing the restaurant.. they did disclose some information to me.. but not much... The only way I could have direct access to X-LLC's books was if I made an offer to purchase their company.

I did contact the previous owners of the restaurant, they were more than willing to give me any information that I needed.

 

[hexeliebe]

You have the right to all leases, rental agreements and other such income-producing contracts between the owner of the business and the leasee (the restaurant).

Also, if the restaurant is leasing based on gross reciepts you also have the right to examine the books (regardless of the structure of the business) to ascertain the level of lease payments.